Note 6 - Income Taxes

6 Months Ended

Jun. 30, 2015

NOTE

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6 INCOME TAXES

The Company generated an operating loss for the six months ended June 30, 2015 and 2014 and did not record income tax expense. The Company has operations in various countries and is subject to tax in the jurisdictions in which they operate, as follows:

United States of America

UOLI is registered in the State of Nevada and is subject to United States of America tax law. No provision for income taxes have been made as UOLI has generated no taxable income for the periods presented. The Company has not completed filings of these US tax returns. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the period presented.

British Virgin Island

Under the current BVI law, the Company is not subject to tax on income.

Hong Kong

The Company’s subsidiary operating in Hong Kong is subject to Hong Kong Profits Tax at the statutory rate of 16.5% on its assessable income for the six months ended June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015, the Company has

generated no operating income, with approximately $2,439,612 of net operating loss carryforwards for Hong Kong tax purpose at no expiration.

The following table sets forth the significant components of the aggregate net deferred tax assets of the Company as of June 30, 2015 and December 31, 2014:

	June 30, 2015			December 31, 2014
Deferred tax assets:
Net operating loss carryforwards
- United States of America (local)		48,162			-
- Hong Kong		402,536			403,117
Less: valuation allowance		(450,698	)		(403,117	)

Net deferred tax assets	$	-		$	-

As of June 30, 2015, the Company has provided for a full valuation allowance against the deferred tax assets of $450,698 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. For the six months ended June 30, 2015, the valuation allowance is increased by $47,581, primarily relating to net operating loss carryforwards from the foreign tax regime.